Romania's office market to grow slightly in 2024 - Colliers

Colliers expects the office market in the country to be a landlords' market in 2024, it said in its Top 10 Predictions for Romania in 2024 report, released on January 18.

The overall outlook for the Romanian warehouse market remains positive in 2024 due to strong demand and a limited supply of modern warehouse space, according to Colliers. The increase in warehouse rents in Romania may put off some international companies, but the country still offers a competitive cost structure for logistics operations.

Romania is undergoing a major infrastructure overhaul, with a focus on improving road and rail networks, Colliers noted. The country's 1,100 kilometres long high-speed road network is expected to double in size by 2030, and major modernisation works are also being carried out on the railways. This, together with the country's potential Schengen area entry for terrestrial borders is expected to attract investment to regions with lower wages and improved availability of employees, leading to a better distribution of growth and economic resources.

The country's economy is expected to grow by at least 3% in 2024 due to capital inflows, infrastructure improvements, the re-shoring trend, and a tight labor market, Colliers also said.

The Romanian investment market is expected to improve in 2024 as interest rates begin to fall. According to Colliers' estimates, the volume of deals is still uncertain but could be similar to last year's 500 million euro ($544.4 million) as the possible completion of several large-scale projects would drive the volume higher.

($=0.918414 euro)